How to Choose the right TMS solution 

How to Select a TMS: Outcome-Driven vs. Feature-Based Evaluation

When choosing a TMS, companies often face the dilemma of selecting a system based solely on features versus focusing on the outcomes that the system will deliver. Alpega TMS advocates an outcome-driven approach that prioritizes the end results and business value over a checklist of functionalities.

Understanding Your Transportation Needs

Choosing the right TMS begins with identifying the unique transportation needs of the business:

• Complexity of Operations: Are the logistics requirements local, regional, or global? Does the company need support for multimodal transportation?
• Scalability Requirements: Is the company likely to expand its logistics operations in the near future? Does it need a TMS that can adapt as operations grow?
• Integration and Compliance: Does the TMS need to integrate with existing ERP, CRM, and other systems? Is compliance with specific regulations crucial?

Evaluating KPIs Before Implementing a TMS

The best way to assess the effectiveness of a TMS is to establish key performance indicators (KPIs) that align with business objectives. Here are some of the most important KPIs for transportation management:

• On-Time In-Full (OTIF): This KPI measures how reliably the logistics operation meets delivery deadlines and order requirements. A high OTIF is critical for maintaining strong customer relationships.
• Freight Cost per Unit: Managing transportation costs efficiently is crucial to profitability. This KPI helps monitor logistics spend per unit delivered, providing insights into cost control measures.
• Total Freight Spend: Keeping track of total freight costs is essential for budgeting and financial control. A TMS can significantly enhance visibility into spending patterns and enable proactive cost management.
• Carbon Emissions Tracking: With sustainability goals becoming more central to business strategies, tracking carbon emissions has become critical. Alpega’s emission calculation tools provide insight into emissions per shipment, helping companies align with their environmental targets.

Alpega’s Approach to Outcome-Based Implementation

Alpega works closely with its clients to identify desired outcomes before implementing the TMS. Whether the goal is to reduce logistics costs, improve shipment visibility, or achieve carbon neutrality, Alpega tailors its implementation to achieve specific business objectives. By understanding the outcomes that matter most to a business, Alpega can create a customized solution that maximizes return on investment.